Blow for the government as new maize price is dismissed hours after the declaration .
Political leaders and farmers from the North Rift region have rejected the government move of purchasing maize being harvested now at Ksh2,300 per 90kg bag.
The politicians and maize growers say the new price can only buy a one 50kg bag.
Adding that the new price announced by the government, has set a stage for conflict with farmers already suffering losses from the last season.
Speaking during a Noreb summit meeting in Eldoret, the governors said the new prices for this season’s produce are too low as production costs are concerned, and thus an insult to grain growers.
“The Sh2,300 price announced by Strategic Food Reserve Trust Fund (SFRTF)is not what we agreed on as the maize task force. In our first meeting, we told the Fund the least they can buy maize from farmers is Sh2,500 considering the production parameters,” said Uasin Gishu Governor Jackson Mandago, the Noreb’s chair.
Mr Mandago also criticised the Fund for saying it will buy two million bags of maize contrary to the budgeted four million bags.
He argued that farmers cannot make profits at Sh2,300 per bag considering the cost of production, saying SFRTR must review the prices. He added that if the prices are not reviewed, it will be pointless for the farmers to continue growing the crop from next year.
The announcement was made yesterday by SFRF, which intends to buy 2.5 million bags from the 2018/19 harvest.
SRFR chairman Noah Wekesa said they will start buying the maize once the National Treasury avails funds.
“The purchase of the stock will start through our contracted agent, the National Cereals and Produce Board (NCPB), as soon as funds are availed by the National Treasury,” Dr Wekesa said during a press briefing at the Devolution ministry boardroom at Teleposta Towers, Nairobi.
Asked why the board lowered the price it offered last year, he said the country is not short of maize due to last year’s bumper harvest.
He also cited dynamics brought about by large imports during the duty free window ordered by the government mid last year.
“We are also trying to balance the interests of farmers against those of consumers. Raising the price to Sh3,200 as was the case last year would mean that the retail price would go up,” he said.
Dr Wekesa noted that the government has released Sh2.13 billion to pay farmers owed for produce delivered in 2017.
It however regretted that both the ministry and the Kenya Bureau of Standards (Kebs), which conducted investigations, have not furnished the board with the report of their findings.